OVDP Allows Clients with Foreign Assets to Avoid Drastic Tax Consequences
In recent years, the Internal Revenue Service has amped up enforcement of rules regarding offshore accounts held by United States residents. In many situations, parties who were unaware of reporting requirements can be assessed a crippling combination of back taxes owed, interest, and penalties. In certain circumstances, criminal prosecution for…
Estate Planning in New Jersey in 2013
BACKGROUND The 2012 American Taxpayer Relief Act (“ATRA”), signed into law in 2013 (or, as a 2012 Act, on December 31, 2012) has dramatically changed estate planning in many ways. The federal changes, an increased exemption of $5,250,000 per person and the concept of “portability” of estate tax exemptions, have dramatically changed…
2013 SuperLawyers
Seven attorneys at Kulzer & DiPadova were recognized byNew Jersey Super Lawyers magazine in 2013. * Kulzer & DiPadova attorneys were recognized as New Jersey Super Lawyers for 2013: Arthur A. DiPadova and Glenn A. Henkel were named in the area of Estate Planning & Probate, Michael A. Kulzer in the area of Closely Held Business and James B….
Built-In Gains Holding Period for 2012 and 2013
If a corporation that was previously a C-corporation files its S election after December 31, 1986 it is subject to the built-in gains tax under the Tax Reform Act of 1986. As enacted, the tax was imposed on any built-in gain resulting from the sale of any assets owned at the time of…
American Taxpayer Relief Act of 2012 Update
Just in time to replace the expired 2011 “patch” for the Alternative Minimum Tax (“AMT”) the American Taxpayer Relief Act of 2012 (“ATRA”) permanently extends AMT relief while retroactively increasing the AMT exemption for 2012. The ATRA increases the AMT exemption for 2012 for unmarried individuals to $50,600; for married taxpayers filing jointly and surviving spouses to $78,750;…
Tax Rates on Capital Gains & Qualified Dividends
For tax rates on capital gains and qualified dividends, the 2012 Act largely left intact the existing tax rates applied to long term capital gains and qualified dividend income that existed through the end of 2012, with an increase for high income individuals. Old Law Prior to the 2012 Act, capital gains and…
Individual Tax Extender
Tax Extender: Prior to the enactment of the American Taxpayer Relief Act of 2012 (“ATRA”), the potential expiration of a variety of credits and deductions caused individual taxpayers and tax return preparers to face unprecedented uncertainty for the 2012 and 2013 tax years which helped to carve the so-called “fiscal…
Healthcare Taxes
Addressing Healthcare Taxes in 2013, new taxes included in the 2010 Patient Protection and Affordable Care Act will take effect, broadening the Medicare tax base for higher-income taxpayers by: Imposing an additional Hospital Insurance (HI) tax rate of 0.9 percent on earned income in excess of $200,000 for individuals and $250,000 for…
Permanent Estate Tax Relief
One of the major elements to ATRA 2012 is the fact that it has finally given the estate and gift tax a permanent law upon which taxpayers can rely. By way of background, the estate tax has been in a state of constant uncertainty since the 2001 tax law that sought to “repeal” the…
Social Security and Personal Income Taxes
The Social Security tax rate on wages and self-employment income will revert to its previous rate of 6.2% for employees and 12.4% for self-employed individuals beginning January 1, 2013. The Social Security tax rate for 2012 was 4.2% for employees and 10.4% for self-employed individuals. All wages and self-employment income up to the Social Security wage base in…